Maryland postsecondary education bonds.
From $100.
Before a career school or other private postsecondary institution opens in Maryland, the Higher Education Commission (MHEC) requires a surety bond or letter of credit to protect students' prepaid tuition. MHEC sets the amount from your tuition liability, and the premium is 1% of the bond amount, $100 minimum.
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How much does a Maryland postsecondary education bond cost?
1% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
No underwriting queue for the standard tuition-guaranty bond — enter your amount, pay, and file with MHEC. Here is the whole thing:
Apply online
Your institution's details, the bond amount MHEC required, and the effective date — that is the application.
Issued on the spot
No waiting — the executed bond is generated as soon as you pay for most applicants. Above $10,000, a soft pull may add a short review.
File with MHEC
Submit the executed bond with your application for approval to operate. Wet-ink originals mailed whenever MHEC insists.
What it is and who needs it.
What the tuition-guaranty bond covers
Maryland's Higher Education Commission regulates private career schools and other private postsecondary institutions. Before such a school can operate, MHEC requires a financial guarantee — a surety bond or letter of credit — protecting students who have prepaid tuition if the school closes or fails to deliver the training.
The amount is tied to your tuition liability: MHEC calculates it as a percentage of the tuition the school would owe at its maximum enrollment, and a new school's guarantee can be required to run for several years. The figure is on your MHEC approval paperwork.
If the school closes mid-program, affected students can recover prepaid tuition against the bond — and if the surety pays, the school repays the surety. Degree-granting and non-degree (career) schools are handled somewhat differently by MHEC; enter the amount MHEC set for your institution — the premium is 1% of that bond amount, with a $100 minimum. No credit check up to $10,000.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with MHEC. Submit the executed bond with your application for approval to operate. Wet-ink originals mailed whenever MHEC insists.
What sets the price
The premium is 1% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $10,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued on the spot.
Submit the application with the bond amount MHEC required — the executed bond is generated instantly, ready to file.
Start the application →Common questions.
Other Maryland bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Tuition-guaranty bond, issued today.
Pricing from $100. Enter the amount MHEC required and file the same day.